Chapter 7 Bankruptcy Timeline

A chapter 7 bankruptcy comes with conditions and this time-line is for chapter 7 bankruptcy information purposes only. Within 180 days prior to filing chapter 7 bankruptcy, you must take a credit counseling class at a government-approved credit counseling agency where you will learn rules and file the certificate you receive after completion that proves you have taken this class. You also must take the means test, this will determine if you qualify for a chapter 7 bankruptcy filing. Both these steps are mandatory, and without them, the court will not accept your petition.

The first true day of your chapter 7 bankruptcy cases is the day that you file your chapter 7 bankruptcy petition. This means that someone has submitted all your chapter 7 bankruptcy documents to the bankruptcy court.

Two weeks later, on day 14, all of your creditors will be notified of your chapter 7 bankruptcy by the court-appointed trustee who will oversee your personal bankruptcy case.

Once your creditors have been notified, an automatic stay goes into place and they can no longer contact you until the meeting of creditors, which will take place between day 20 and day 40. This meeting of creditors is basically the creditors’ opportunity to object to your chapter 7 bankruptcy filing.

If there is no objection to your chapter 7 bankruptcy filing, the trustee will continue to liquidate your assets. This liquidation of assets usually starts between day 20 and 30, and can start before the meeting of creditors.

In a chapter 7 bankruptcy, the trustee will sell all non-exempt assets in order to pay your creditors with the proceeds. By day 90 of your filing your bankruptcy, all creditors of non-secured debts must have filed their claims against you in order to secure any part of the proceeds of the liquidation of your assets.

If it all runs smoothly, you will receive your official discharge from the bankruptcy judge between day 60 and day 90 and your chapter 7 bankruptcy case will finally be over.